CAUSES OF LOSS SPECIAL FORM. Words and phrases that appear in quotation marks have special meaning. Refer to Section F. Definitions.

Transcription

1 CAUSES OF LOSS SPECIAL FORM COMMERCIAL PROPERTY CP Wds and phrases that appear in quotation marks have special meaning. Refer to Section F. Definitions. A. COVERED CAUSES OF LOSS When Special is shown in the Declarations, Covered Causes of Loss means RISKS OF DIRECT PHYSICAL LOSS unless the loss is: 1. Excluded in Section B., Exclusions; 2. Limited in Section C., Limitations; that follow. B. EXCLUSIONS 1. We will not pay f loss damage caused directly indirectly by any of the following. Such loss damage is excluded regardless of any other cause event that contributes concurrently in any sequence to the loss. a. Ordinance Law The enfcement of any dinance law: (1) Regulating the construction, use repair of any property; (2) Requiring the tearing down of any property, including the cost of removing its debris. This exclusion, Ordinance Law, applies whether the loss results from: (1) An dinance law that is enfced even if the property has not been damaged; (2) The increased costs incurred to comply with an dinance law in the course of construction, repair, renovation, remodeling demolition of property, removal of its debris, following a physical loss to that property. b. Earth Movement (1) Any earth movement (other than sinkhole collapse), such as an earthquake, landslide, mine subsidence earth sinking, rising shifting. But if earth movement results in fire explosion, we will pay f the loss damage caused by that fire explosion. (2) Volcanic eruption, explosion effusion. But if volcanic eruption, explosion effusion results in fire, building glass breakage Volcanic Action, we will pay f the loss damage caused by that fire, building glass breakage Volcanic Action. Volcanic action means direct loss damage resulting from the eruption of a volcano when the loss damage is caused by: (a) Airbne volcanic blast airbne shock waves; (b) Ash, dust particulate matter; (c) Lava flow. All volcanic eruptions that occur within any 168 hour period will constitute a single occurrence. Volcanic action does not include the cost to remove ash, dust particulate matter that does not cause direct physical loss damage to the described property. c. Governmental Action Seizure destruction of property by der of governmental authity. But we will pay f loss damage caused by resulting from acts of destruction dered by governmental authity and taken at the time of a fire to prevent its spread, if the fire would be covered under this Coverage Part. d. Nuclear Hazard Nuclear reaction radiation, radioactive contamination, however caused. But if nuclear reaction radiation, radioactive contamination, results in fire, we will pay f the loss damage caused by that fire. CP Copyright, ISO Commercial Risk Services, Inc., 1994 Page 1 of 7

2 e. Utility Services The failure of power other utility service supplied to the described premises, however caused, if the failure occurs away from the described premises. But if the failure of power other utility service results in a Covered Cause of Loss, we will pay f the loss damage caused by that Covered Cause of Loss. This exclusion does not apply to the Business Income coverage to Extra Expense coverage. Instead, the Special Exclusion in paragraph B.4.a.(1) applies to these coverages. f. War And Military Action (1) War, including undeclared civil war; (2) Warlike action by a military fce, including action in hindering defending against an actual expected attack, by any government, sovereign other authity using military personnel other agents; (3) Insurrection, rebellion, revolution, usurped power, action taken by governmental authity in hindering defending against any of these. g. Water (1) Flood, surface water, waves, tides, tidal waves, overflow of any body of water, their spray, all whether driven by wind not; (2) Mudslide mudflow; (3) Water that backs up overflows from a sewer, drain sump; (4) Water under the ground surface pressing on, flowing seeping through: (a) Foundations, walls, flos paved surfaces; (b) Basements, whether paved not; (c) Dos, windows other openings. But if Water, as described in g.(1) through g.(4) above, results in fire, explosion sprinkler leakage, we will pay f the loss damage caused by that fire, explosion sprinkler leakage. 2. We will not pay f loss damage caused by resulting from any of the following: a. Artificially generated electrical current, including electric arcing, that disturbs electrical devices, appliances wires. But if artificially generated electrical current results in fire, we will pay f the loss damage caused by that fire. b. Delay, loss of use loss of market. c. Smoke, vap gas from agricultural smudging industrial operations. d. (1) Wear and tear; (2) Rust, crosion, fungus, decay, deteriation, hidden latent defect any quality in property that causes it to damage destroy itself; (3) Smog; (4) Settling, cracking, shrinking expansion; (5) Nesting infestation, discharge release of waste products secretions, by insects, birds, rodents other animals. (6) Mechanical breakdown, including rupture bursting caused by centrifugal fce. But if mechanical breakdown results in elevat collision, we will pay f the loss damage caused by that elevat collision. (7) The following causes of loss to personal property: (a) Dampness dryness of atmosphere; (b) Changes in extremes of temperature; (c) Marring scratching. But if an excluded cause of loss that is listed in 2.d. (1) through (7) results in a "specified cause of loss" building glass breakage, we will pay f the loss damage caused by that "specified cause of loss" building glass breakage. e. Explosion of steam boilers, steam pipes, steam engines steam turbines owned leased by you, operated under your control. But if explosion of steam boilers, steam pipes, steam engines steam turbines results in fire combustion explosion, we will pay f the loss damage caused by that fire combustion explosion. We will also pay f loss damage caused by resulting from the explosion of gases fuel within the furnace of any fired vessel within the flues passages through which the gases of combustion pass. Page 2 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP

3 f. Continuous repeated seepage leakage of water that occurs over a period of 14 days me. g. Water, other liquids, powder molten material that leaks flows from plumbing, heating, air conditioning other equipment (except fire protective systems) caused by resulting from freezing, unless: (1) You do your best to maintain heat in the building structure; (2) You drain the equipment and shut off the supply if the heat is not maintained. h. Dishonest criminal act by you, any of your partners, employees (including leased employees), directs, trustees, authized representatives anyone to whom you entrust the property f any purpose: (1) Acting alone in collusion with others; (2) Whether not occurring during the hours of employment. This exclusion does not apply to acts of destruction by your employees (including leased employees); but theft by employees (including leased employees) is not covered. i. Voluntary parting with any property by you anyone else to whom you have entrusted the property if induced to do so by any fraudulent scheme, trick, device false pretense. j. Rain, snow, ice sleet to personal property in the open. k. Collapse, except as provided below in the Additional Coverage f Collapse. But if collapse results in a Covered Cause of Loss at the described premises, we will pay f the loss damage caused by that Covered Cause of Loss. l. Discharge, dispersal, seepage, migration, release escape of "pollutants" unless the discharge, dispersal, seepage, migration, release escape is itself caused by any of the "specified causes of loss". But if the discharge, dispersal, seepage, migration, release escape of "pollutants" results in a "specified cause of loss", we will pay f the loss damage caused by that "specified cause of loss". 3. We will not pay f loss damage caused by resulting from any of the following, 3.a. through 3.c. But if an excluded cause of loss that is listed in 3.a. through 3.c. results in a Covered Cause of Loss, we will pay f the loss damage caused by that Covered Cause of Loss. a. Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause event excluded in paragraph 1. above to produce the loss damage. b. Acts decisions, including the failure to act decide, of any person, group, ganization governmental body. c. Faulty, inadequate defective: (1) Planning, zoning, development, surveying, siting; (2) Design, specifications, wkmanship, repair, construction, renovation, remodeling, grading, compaction; (3) Materials used in repair, construction, renovation remodeling; (4) Maintenance; of part all of any property on off the described premises. 4. Special Exclusions The following provisions apply only to the specified Coverage Fms. a. Business Income (And Extra Expense) Coverage Fm, Business Income (Without Extra Expense) Coverage Fm, Extra Expense Coverage Fm We will not pay f: (1) Any loss caused directly indirectly by the failure of power other utility service supplied to the described premises, however caused, if the failure occurs outside of a covered building. But if the failure of power other utility service results in a Covered Cause of Loss, we will pay f the loss resulting from that Covered Cause of Loss. (2) Any loss caused by resulting from: (a) Damage destruction of "finished stock"; (b) The time required to reproduce "finished stock". This exclusion does not apply to Extra Expense. CP Copyright, ISO Commercial Risk Services, Inc., 1994 Page 3 of 7

4 (3) Any loss caused by resulting from direct physical loss damage to radio television antennas (including satellite dishes) and their lead-in wiring, masts towers. (4) Any increase of loss caused by resulting from: (a) Delay in rebuilding, repairing replacing the property resuming "operations", due to interference at the location of the rebuilding, repair replacement by strikers other persons; (b) Suspension, lapse cancellation of any license, lease contract. But if the suspension, lapse cancellation is directly caused by the suspension of "operations", we will cover such loss that affects your Business Income during the "period of restation". (5) Any Extra Expense caused by resulting from suspension, lapse cancellation of any license, lease contract beyond the "period of restation". (6) Any other consequential loss. b. Leasehold Interest Coverage Fm (1) Paragraph B.1.a. Ordinance Law, does not apply to insurance under this Coverage Fm. (2) We will not pay f any loss caused by: (a) Your cancelling the lease; (b) The suspension, lapse cancellation of any license; (c) Any other consequential loss. c. Legal Liability Coverage Fm (1) The following Exclusions do not apply to insurance under this Coverage Fm: (a) Paragraph B.1.a., Ordinance Law; (b) Paragraph B.1.c., Governmental Action; (c) Paragraph B.1.d., Nuclear Hazard; (d) Paragraph B.1.e., Utility Services; and (e) Paragraph B.1.f., War and Military Action. C. LIMITATIONS (2) The following additional exclusions apply to insurance under this Coverage Fm: (a) Contractual Liability We will not defend any claim "suit", pay damages that you are legally liable to pay, solely by reason of your assumption of liability in a contract agreement. But this exclusion does not apply to a written lease agreement in which you have assumed liability f building damage resulting from an actual attempted burglary robbery, provided that: (i) Your assumption of liability was executed pri to the accident; and (ii) The building is Covered Property under this Coverage Fm. (b) Nuclear Hazard We will not defend any claim "suit", pay any damages, loss, expense obligation, resulting from nuclear reaction radiation, radioactive contamination, however caused. The following limitations apply to all policy fms and endsements, unless otherwise stated. We will not pay f loss of damage to property, as described and limited in this section. In addition, we will not pay f any loss that is a consequence of loss damage as described and limited in this section. a. Steam boilers, steam pipes, steam engines steam turbines caused by resulting from any condition event inside such equipment. But we will pay f loss of damage to such equipment caused by resulting from an explosion of gases fuel within the furnace of any fired vessel within the flues passages through which the gases of combustion pass. b. Hot water boilers other water heating equipment caused by resulting from any condition event inside such boilers equipment, other than an explosion. Page 4 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP

5 c. The interi of any building structure, to personal property in the building structure, caused by resulting from rain, snow, sleet, ice, sand dust, whether driven by wind not, unless: (1) The building structure first sustains damage by a Covered Cause of Loss to its roof walls through which the rain, snow, sleet, ice, sand dust enters; (2) The loss damage is caused by results from thawing of snow, sleet ice on the building structure. d. Building materials and supplies not attached as part of the building structure, caused by resulting from theft. However, this limitation does not apply to: (1) Building materials and supplies held f sale by you, unless they are insured under the Builders Risk Coverage Fm; (2) Business Income coverage Extra Expense coverage. e. Property that is missing, where the only evidence of the loss damage is a shtage disclosed on taking inventy, other instances where there is no physical evidence to show what happened to the property. f. Gutters and downspouts caused by resulting from weight of snow, ice sleet. g. Property that has been transferred to a person to a place outside the described premises on the basis of unauthized instructions. 2. We will not pay me than $500 in any one occurrence f loss of damage to glass that is part of a building structure, regardless of the number of panes, plates similar units of glass. Subject to this $500 aggregate, we will not pay me than $100 f any one pane, plate, multiple plate insulating unit, radiant solar heating panel, jalousie, louver shutter. However, this limitation does not apply to: a. Loss damage by the "specified causes of loss", except vandalism; b. Business Income coverage Extra Expense coverage. 3. We will not pay f loss of damage to the following types of property unless caused by the "specified causes of loss" building glass breakage: a. Valuable papers and recds, such as books of account, manuscripts, abstracts, drawings, card index systems, film, tape, disc, drum, cell other data processing, recding stage media, and other recds. b. Animals, and then only if they are killed their destruction is made necessary. c. Fragile articles such as glassware, statuary, marbles, chinaware and pcelains, if broken. This restriction does not apply to: (1) Glass that is part of a building structure; (2) Containers of property held f sale; (3) Photographic scientific instrument lenses. d. Builders' machinery, tools and equipment owned by you entrusted to you, provided such property is Covered Property. However, this limitation does not apply: (1) If the property is located on within 100 feet of the described premises, unless the premises is insured under the Builders Risk Coverage Fm; (2) To Business Income coverage to Extra Expense coverage. 4. The special limit shown f each categy, a. through d., is the total limit f loss of damage to all property in that categy. The special limit applies to any one occurrence of theft, regardless of the types number of articles that are lost damaged in that occurrence. The special limits are: a. $2,500 f furs, fur garments and garments trimmed with fur. b. $2,500 f jewelry, watches, watch movements, jewels, pearls, precious and semiprecious stones, bullion, gold, silver, platinum and other precious alloys metals. This limit does not apply to jewelry and watches wth $100 less per item. c. $2,500 f patterns, dies, molds and fms. CP Copyright, ISO Commercial Risk Services, Inc., 1994 Page 5 of 7

6 d. $250 f stamps, tickets, including lottery tickets held f sale, and letters of credit. These special limits are part of, not in addition to, the Limit of Insurance applicable to the Covered Property. This limitation, C.4., does not apply to Business Income coverage to Extra Expense coverage. 5. We will not pay the cost to repair any defect to a system appliance from which water, other liquid, powder molten material escapes. But we will pay the cost to repair replace damaged parts of fire extinguishing equipment if the damage: a. Results in discharge of any substance from an automatic fire protection system; b. Is directly caused by freezing. However, this limitation does not apply to Business Income coverage to Extra Expense coverage. D. ADDITIONAL COVERAGE COLLAPSE The term Covered Cause of Loss includes the Additional Coverage Collapse as described and limited in D.1. through D.5. below. 1. We will pay f direct physical loss damage to Covered Property, caused by collapse of a building any part of a building insured under this Coverage Fm, if the collapse is caused by one me of the following: a. The "specified causes of loss" breakage of building glass, all only as insured against in this Coverage Part; b. Hidden decay; c. Hidden insect vermin damage; d. Weight of people personal property; e. Weight of rain that collects on a roof; f. Use of defective material methods in construction, remodeling renovation if the collapse occurs during the course of the construction, remodeling renovation. However, if the collapse occurs after construction, remodeling renovation is complete and is caused in part by a cause of loss listed in D.1.a. through D.1.e., we will pay f the loss damage even if use of defective material methods, in construction, remodeling renovation, contributes to the collapse. 2. If the direct physical loss damage does not involve collapse of a building any part of a building, we will pay f loss damage to Covered Property caused by the collapse of personal property only if: a. The personal property which collapses is inside a building; and b. The collapse was caused by a cause of loss listed in D.1.a. through D.1.f. above. 3. With respect to the following property: a. Outdo radio television antennas (including satellite dishes) and their lead-in wiring, masts towers; b. Awnings, gutters and downspouts; c. Yard fixtures; d. Outdo swimming pools; e. Fences; f. Piers, wharves and docks; g. Beach diving platfms appurtenances; h. Retaining walls; and i. Walks, roadways and other paved surfaces; if the collapse is caused by a cause of loss listed in D.1.b. through D.1.f., we will pay f loss damage to that property only if: a. Such loss damage is a direct result of the collapse of a building insured under this Coverage Fm; and b. The property is Covered Property under this Coverage Fm. 4. Collapse does not include settling, cracking, shrinkage, bulging expansion. 5. This Additional Coverage Collapse, will not increase the Limits of Insurance provided in this Coverage Part. E. ADDITIONAL COVERAGE EXTENSIONS 1. Property In Transit. This Extension applies only to your personal property to which this fm applies. a. You may extend the insurance provided by this Coverage Part to apply to your personal property (other than property in the care, custody control of your salespersons) in transit me than 100 feet from the described premises. Property must be in on a mot vehicle you own, lease operate while between points in the coverage territy. Page 6 of 7 Copyright, ISO Commercial Risk Services, Inc., 1994 CP

7 b. Loss damage must be caused by result from one of the following causes of loss: (1) Fire, lightning, explosion, windstm hail, riot civil commotion, vandalism. (2) Vehicle collision, upset overturn. Collision means accidental contact of your vehicle with another vehicle object. It does not mean your vehicle's contact with the road bed. (3) Theft of an entire bale, case package by fced entry into a securely locked body compartment of the vehicle. There must be visible marks of the fced entry. c. The most we will pay f loss damage under this Extension is $1000. This Coverage Extension is additional insurance. The Additional Condition, Coinsurance, does not apply to this Extension. 2. Water Damage, Other Liquids, Powder Molten Material Damage. If loss damage caused by resulting from covered water other liquid, powder molten material damage loss occurs, we will also pay the cost to tear out and replace any part of the building structure to repair damage to the system appliance from which the water other substance escapes. F. DEFINITIONS "Specified Causes of Loss" means the following: Fire; lightning; explosion; windstm hail; smoke; aircraft vehicles; riot civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice sleet; water damage. 1. Sinkhole collapse means the sudden sinking collapse of land into underground empty spaces created by the action of water on limestone dolomite. This cause of loss does not include: a. The cost of filling sinkholes; b. Sinking collapse of land into man-made underground cavities. 2. Falling objects does not include loss damage to: a. Personal property in the open; b. The interi of a building structure, property inside a building structure, unless the roof an outside wall of the building structure is first damaged by a falling object. 3. Water damage means accidental discharge leakage of water steam as the direct result of the breaking apart cracking of any part of a system appliance (other than a sump system including its related equipment and parts) containing water steam. CP Copyright, ISO Commercial Risk Services, Inc., 1994 Page 7 of 7